The 2025 Atlantic hurricane season is forecast to exceed normal activity levels, potentially placing significant pressure on the financial resilience of U.S. property and casualty (P&C) insurers if multiple storms strike high-value, populated areas. The National Oceanic and Atmospheric Administration (NOAA) forecasts above-average storm activity, driven by exceptionally warm ocean temperatures and conducive atmospheric conditions. Insurers enter this season with strengthened balance sheets, as industry capital and surplus have grown on the back of strong underwriting results and rate increases. This robust capital base—along with strategic use of reinsurance—provides a sizable buffer against major hurricane losses. However, elevated hurricane frequency may still pressure key financial metrics. This KBRA report highlights how capital adequacy, underwriting margins, reinsurance pricing and structure, and reserve strength will be critical focal points for the remainder of 2025.
Report|30 Jun 2025
Keeping a Watchful Eye on Insurers Amid Busy Hurricane Forecasts
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